Analysis of Inventory Control Systems: A Case Study At Air Processing Ghana Limited.
Loading...
Date
2012-11-20
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Many Organizations face great challenges in managing inventories. Poor inventory management may result in under-stocking, overstocking as well as high inventory total cost.
This paper examines inventory situation at Air Processing Ghana Limited. The objective of this paper is to develop the Economic order Quantity (mathematical) model that will be used to determine number of units of gases to be ordered at a time and the re-order point, that is the level to which stocks are allow to fall before ordering for the various imported gases. The resulting EOQ for each gas is compared to the actual ordered quantities so as to see whether there is any relationship between them in operational cost reduction. The study used secondary data from Air Processing Ghana Limited.
Excel was used to find EOQ and the re-order point. The results show that the relationship between the EOQ’s and the ordered quantities at Air Processing in terms of cost reduction was significant. Therefore it was concluded that the ordered quantities at Air processing were not optimal.
Therefore it is recommended that in order to manage inventory effectively, Air processing Ghana Limited needs to employ inventory control model such as the EOQ model to obtain reasonable ordered quantities for its gases.
Description
A thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirement for the award of Master of Science degree in Industrial Mathematics,